An Increase in the Average Collection Period May Suggest All

question 83

Multiple Choice

An increase in the average collection period may suggest all of the following EXCEPT ____.

• A) the company caters to slow-paying customers
• B) customers are not paying their bills on time
• C) sales have decreased
• D) an overly liberal credit policy

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Definitions:

Hierarchical Layers

Levels of authority and responsibility within an organization, structured in a rank order from highest to lowest.

Knowledge Worker

An individual whose primary job involves processing and working with information, as opposed to manual labor.

Product Life Cycles

The stages a product goes through from development and introduction to the market, to growth, maturity, and eventual decline.

Empowerment

The process of giving individuals or groups more power and control over their lives or work, often leading to increased autonomy and self-determination.